The next sale of government bonds has strengthened the hryvnia to a three-year high
Yesterday, the Finance Ministry attracted to the budget 2,826 billion and 547 million dollars through the sale of government bonds, the interest on which in comparison with previous placements slightly decreased. Hryvnia-denominated bonds issued in the period 161, 343 847 days with a yield of 16.15%, of 15.52% and 15,95% per annum, USD – 687 and 519 days with a yield of 5.5% and 5.25% per annum.
Every auction of government bonds strengthens the hryvnia, mainly because they are buying non-residents who sell the currency. Yesterday the dollar in early trading fell below the psychological level of 25 UAH/$ and traded within 24,84-24,88 UAH/$, although the national Bank maintained it from further sagging, buying surplus currency through the system for Matching 24,88 UAH/$.
the Main sellers of the currency yesterday was non-residents who have accumulated UAH for participation in auction the Ministry of Finance, as well as exporters that the torque required for current payments.
at the end of the session the exchange rate returned to the level of 25 UAH/$, since the non-residents who have not acquired hryvnia government bonds, transferred to the national currency into foreign currency.
Minor trading volumes on the interbank market are highly dependent on the actions of the main players. If it had been the local exporters, importers and the national Bank, in the last few months in their part were non-residents, who are actively conducting operations with the Ukrainian bonds, with significant profitability. Because of the actions of non-residents most traditional domestic interbank markers now almost no impact on exchange rate trends.